Does Wrongdoer Reputation Matter? Impact of Auditor-Wrongdoer Performance and Likeability Reputations on Fellow Auditors' Intention to Take Action and Choice of Reporting Outlet

2011 ◽  
Vol 23 (2) ◽  
pp. 207-234 ◽  
Author(s):  
Jesse C. Robertson ◽  
Chad M. Stefaniak ◽  
Mary B. Curtis
Keyword(s):  
Two Dimensions ◽  
Data Availability ◽  
Good Performer ◽  
Reporting Decisions ◽  
Prior Literature ◽  
Reporting Channel ◽  
Channel Preferences ◽  
Main Effects ◽  
The Impact ◽  
Selection Of

ABSTRACT We investigate the effects of auditor-wrongdoer reputations for performance and likeability on fellow auditors' intentions to take action in response to a questionable audit act. We also use this context to explore auditor selection of reporting outlets, when they do choose to take action. In an experiment with 181 auditors, main effects suggest that likeability reputation is a significant determinant of intention to take action, while performance reputation is marginally significant. As expected, interaction results indicate that auditors have the greatest intention to take action against less likeable, poor performers. Contrary to expectations, intention to take action against a more likeable, good performer is no lower than the mixed conditions. Thus, the influence of the two dimensions of reputation is complex. Additionally, we find auditors are more likely to whistle-blow internally than externally, and through non-anonymous outlets than anonymous outlets. Our contributions include exploring the impact of reputation on the actions of third parties, and advancing prior literature by considering the influence of wrongdoer attributes on reporting decisions and auditors' reporting channel preferences. Data Availability: Data are available from the first author upon request.

Economic Development and Non-Communicable Chronic Diseases

2012 ◽  
Vol 12 (4) ◽  
pp. 1850274 ◽  
Author(s):  
David A. Mayer-Foulkes ◽  
Claudia Pescetto-Villouta
Keyword(s):  
Chronic Diseases ◽  
Health Sector ◽  
Two Dimensions ◽  
Data Availability ◽  
Health Policies ◽  
Comprehensive Data ◽  
Lack Of Exercise ◽  
The Individual ◽  
Research Initiatives ◽  
The Impact

This article outlines the economics of non communicable chronic diseases (NCDs), necessary for designing evidence-based health policies to reduce the prevalence of NCDs. The main risk factors of NCDs are manmade: abuse of alcohol, tobacco, junk food, and lack of exercise. Hence we define an economic category of analysis, unwholesome goods. The analysis tackles the two dimensions of NCDs: individual and collective. The first one linked to how much NCDs are a result of consumer’s choice and the second one, the recognition that NCDs are result of a complex interrelated environment at the society level, evidencing the need for a multisectoral approach. An economic analysis includes the study of 1) NCD in the context of intergenerational life cycle dynamics; 2) demand, supply, externalities, and political economy of NCD factors; 3) the incidence of lifestyle risks according to socioeconomic status, and changes under the impact of economic growth and the demographic transition. Where do the different countries lie on the development pathway? How much of the burden lies on the individual and on the collective dimensions of NCDs? What are the most effective policies for immediate application tackling both, the individual and collective dimensions? To what extent are households affected by financial catastrophe and impoverishment due to NCDs? What are the essential requirements for the health systems to respond with efficiency and efficacy to the NCDs phenomenon? Policy and research initiatives include health sector capability for NCDs, prevention of NCD factors, promotion of multisectoral approaches, and a comprehensive data initiative. Conclusions point to the need to simultaneously implement health policy and construct the necessary evidence bases. A comprehensive data initiative is proposed as needed in addition to expanding data availability in tandem with policy implementation. Finally an initiative is proposed to formulate sufficiently effective multisectoral policies and to establish the necessary links between the health sector and other sectors involved.

Organized Labor and Audit Fees

2017 ◽  
Vol 31 (4) ◽  
pp. 93-108 ◽  
Author(s):  
Lin Cheng ◽  
Santanu Mitra ◽  
Hakjoon Song
Keyword(s):  
Financial Reporting ◽  
Empirical Relationship ◽  
Negative Relationship ◽  
Audit Fees ◽  
Data Availability ◽  
Organized Labor ◽  
Firm Level ◽  
Unionization Rate ◽  
Reporting Decisions ◽  
The Impact

SYNOPSIS This study investigates the empirical relationship between organized labor and audit fees. We find that audit fees are negatively related to the firm-level unionization rate—the higher the unionization rate, the lower the audit fees. We further observe that the unionized firms are less likely to hire Big 4 or industry-specialist auditors. Additional analyses show that the negative relationship between the firm-level unionization rate and audit fees is significantly attenuated for unionized firms with poor financial performance. Our results are consistent with unionized firms preferring less audit scrutiny, which helps them maintain information asymmetry with the labor unions. The study facilitates our understanding of firms' demand for audit services and the consequential effect on audit fees when faced with strong organized labor, and adds to the extant literature investigating the impact of organized labor on various aspects of firms' financial reporting decisions. JEL Classifications: M41; M42. Data Availability: Data used in the analyses are obtained from public sources described in the text.

The Impact on Auditor Judgments of CEO Influence on Audit Committee Independence

2011 ◽  
Vol 30 (4) ◽  
pp. 129-147 ◽  
Author(s):  
Jeffrey R. Cohen ◽  
Lisa Milici Gaynor ◽  
Ganesh Krishnamoorthy ◽  
Arnold M. Wright
Keyword(s):  
Earnings Management ◽  
Financial Reporting ◽  
Audit Committee ◽  
Data Availability ◽  
Audit Committees ◽  
Undue Influence ◽  
Management Incentives ◽  
Auditor Judgments ◽  
The Impact ◽  
Selection Of

SUMMARY Despite the importance of audit committee independence in ensuring the integrity of the financial reporting process, recent research suggests that even when audit committees meet regulatory independence requirements, certain factors, such as undue influence by the CEO over the selection of the audit committee, may diminish the ability of its members to be substantively independent. This study investigates whether auditors consider CEO influence over audit committee independence when making audit judgments where management's incentives to manage earnings differ. In an experiment, we find that audit partners and managers waive a larger amount of a proposed audit adjustment when management's incentives for earnings management are low than when incentives are high. However, when management incentives are high, auditors are less likely to waive as much of an adjustment when the CEO has less influence over the audit committee's independence than when the CEO's influence is greater. In all, the results support our expectations that auditors consider CEO influence on audit committee independence in the resolution of contentious accounting issues. Data Availability: Contact the authors.

scholarly journals Examining the impacts of estimated precipitation isotope (<i>δ</i><sup>18</sup>O) inputs on distributed tracer-aided hydrological modelling

2016 ◽  
Author(s):  
Carly J. Delavau ◽  
Tricia Stadnyk ◽  
Tegan Holmes
Keyword(s):  
Hydrological Modelling ◽  
Data Availability ◽  
Hydrological Models ◽  
Model Simulations ◽  
The Impact ◽  
Drive Model ◽  
Model Structures ◽  
Precipitation Events ◽  
Selection Of ◽  
Modelling Approach

Abstract. Tracer-aided hydrological models are becoming increasingly popular tools as they have documented utility in constraining model parameter space during calibration, reducing model uncertainty, and assisting with selection of appropriate model structures. However, the issue of data availability, particularly input data, proves to be a major challenge associated with this type of application. Tracer-aided hydrological modelling typically requires a time series of isotopes in precipitation (δ18Oppt) to drive model simulations, but unfortunately, throughout much of the world, and particularly in sparsely populated high-latitude regions, these data are not widely available. This study uses the isoWATFLOOD tracer-aided hydrological model to investigate the usefulness of three types of estimated δ18Oppt for model input, and the impact that these data have on model simulations and parameterization in the remote Fort Simpson Basin, NWT, Canada. This study showed that although total simulated streamflow was not significantly impacted by choice of δ18Oppt input, isotopes in streamflow (δ18OSF) simulations and the internal apportionment of water (and therefore, model parameterizations) were impacted, particularly during large precipitation and snowmelt events. This finding highlighted the importance of estimated δ18Oppt to capture both the variability and seasonality in precipitation isotopes as critical for tracer-aided hydrological modelling, especially when precipitation events displayed distinctly different isotopic compositions than that of streamflow. This study achieves an understanding of how isoWATFLOOD can be used in regions with a limited number of δ18Oppt observations, and that the model can be of value in such regions. This study reinforces that a tracer-aided modelling approach assists with resolving hydrograph component contributions, and works towards diagnosing the issue of model equifinality.

Payment Methods in Mergers and Acquisitions: A Theoretical Framework

2018 ◽  
Vol 8 (1) ◽  
pp. 170 ◽  
Author(s):  
B. P. Bijay Sankar ◽  
N. M. Leepsa
Keyword(s):  
Mergers And Acquisitions ◽  
Payment Method ◽  
Negative Effects ◽  
Empirical Survey ◽  
Payment Methods ◽  
Cash Payment ◽  
Prior Literature ◽  
Future Work ◽  
The Impact ◽  
Selection Of

Purpose: This paper aims to review the prior literature on payment methods in Mergers and Acquisitions (M&As) and summarizing its effects on the performance of companies involved in M&As. This study also attempts to find out various determinants of the payment methods of M&As that affects the decision of payment methods in M&As. Methodology: To carry out the analysis, this study focuses the past literature relating to payment methods in M&As and summarizes the positive and negative effects of different payment methods. The review is carried out by dividing into four parts (i) Literature studies on cash payment method (ii) Literature studies on stock payment method (iii) Literature studies on mixed payment and (iv) Determinants of payment methods. The paper investigates based on the findings of the major studies.Research limitations: The scope of the study is confined to the contemporary review of M&As literature than the empirical survey. The study is focused more on giving suggestions for future work on M&As than providing conclusion. Research Implications: The knowledge gained from this study will help managers from both acquirer and target companies for selection of appropriate payment methods and improve their investment mechanism and strengthen their finances by value creation in M&As. Originality: To the authors’ knowledge this paper is the first attempt to document for summarizing the impact of different payment methods and its determinants of performance of M&As deals.

Ego Depletion and Auditors' Busy Season

2017 ◽  
Vol 29 (2) ◽  
pp. 25-35 ◽  
Author(s):  
Patrick J. Hurley
Keyword(s):  
Ego Depletion ◽  
Severe Form ◽  
Judgment And Decision Making ◽  
Self Control ◽  
Data Availability ◽  
Accumulation Effect ◽  
Prior Literature ◽  
Within Subjects ◽  
Theoretical Mechanism ◽  
The Impact

ABSTRACT This study examines the impact of busy season on auditors through ego depletion theory. Ego depletion theory posits that using self-control depletes a cognitive resource and decreases the ability to exercise self-control on subsequent tasks, which can decrease judgment and decision-making (JDM) quality. Using a within-subjects quasi-experiment, I compare self-control resources at the onset of days within and outside of busy season to determine whether auditors experience a between-day accumulation of depletion. I predict and find that auditors experience an accumulation of ego depletion, and therefore begin workdays within busy season in a depleted state. Starting a workday in a depleted state can exacerbate within-day depletion, as studied in prior research. This research contributes a theoretical mechanism linking busy season to auditors' JDM quality and expands ego depletion theory by predicting and finding initial evidence of an accumulation effect, a more severe form of depletion than studied in prior literature. Data Availability: The data used in this study are available from the author upon request.

The Impact of Client Error-Management Climate and the Nature of the Auditor-Client Relationship on External Auditor Reporting Decisions

2017 ◽  
Vol 29 (2) ◽  
pp. 37-50 ◽  
Author(s):  
Stephen Perreault ◽  
James Wainberg ◽  
Benjamin L. Luippold
Keyword(s):  
Audit Quality ◽  
Interpersonal Relationship ◽  
Data Availability ◽  
Error Management ◽  
Corporate Policies ◽  
Tone At The Top ◽  
Client Relationship ◽  
Reporting Decisions ◽  
Auditor Reporting ◽  
The Impact

ABSTRACT An important aspect of an organization's tone at the top is its practices for correcting the behavior of employees who deviate from set corporate policies and procedures (COSO 2013). Collectively, these practices are often referred to as an organization's error-management climate (EMC). We investigate whether a client's EMC can lead to behaviors that could reduce audit quality. We conduct an experiment and find that when a client's EMC is error averse (i.e., where employees are sanctioned for committing errors), external auditors indicate that client employees' errors discovered by the auditor are less likely to be reported. In addition, we examine the joint impact of the nature of the auditor-client relationship and EMC on auditor reporting. We find perceptions of reporting likelihood to be lower when the auditor is described as having a positive interpersonal relationship with the client employee responsible for the error. In addition, we find that this factor interacts with client EMC so as to exacerbate the observed reluctance to report when the climate is error averse. Our results provide initial evidence to suggest that an organization's EMC may impact auditor behaviors that could lead to reduced audit quality. Data Availability: Upon request.

Principles of Disaster Management Lesson 13. Organizational Development

2001 ◽  
Vol 16 (3) ◽  
pp. 175-179
Author(s):  
Fred C. Cuny
Keyword(s):  
Organizational Development ◽  
Work Relationships ◽  
Two Dimensions ◽  
Technological Changes ◽  
Effect Change ◽  
Labor Content ◽  
Sequential Processes ◽  
The Impact ◽  
Relief Organizations ◽  
Selection Of

AbstractChange in any organization is difficult. Relief organizations constantly are evolving and changing form to adapt to different needs, demands, and environment. As the phases of a disaster evolve, adjustments must be made by relief organizations to meet the changing needs. The sequential processes used to manage change include recognition and diagnosis of the problem, identification of alternatives, recognition of limiting conditions, selection of a strategy for change, and implementing and monitoring the change. The techniques used to effect change may be classified as structural, management, or technological. Changes can occur in division of labor, content of the work, relationships with other workers, supervisory and/or technical skills, operations, and decision-making hierarchy. Approaches can be mandated from the top, worked out jointly by management and personnel, or implemented by the affected personnel. Implementation of changes has two dimensions: timing and scope. Whenever changes are implemented, the impact of the changes must be monitored and the effects compared with what was expected.

scholarly journals The (minimal) persuasive advantage of political video over text

2021 ◽  
Vol 118 (47) ◽  
pp. e2114388118
Author(s):  
Chloe Wittenberg ◽  
Ben M. Tappin ◽  
Adam J. Berinsky ◽  
David G. Rand
Keyword(s):  
Two Dimensions ◽  
Persuasive Messages ◽  
Short Video ◽  
The Difference ◽  
And Behavior ◽  
Attitudes And Behavior ◽  
And Control ◽  
The Impact ◽  
Textual Form ◽  
Selection Of

Concerns about video-based political persuasion are prevalent in both popular and academic circles, predicated on the assumption that video is more compelling than text. To date, however, this assumption remains largely untested in the political domain. Here, we provide such a test. We begin by drawing a theoretical distinction between two dimensions for which video might be more efficacious than text: 1) one’s belief that a depicted event actually occurred and 2) the extent to which one’s attitudes and behavior are changed. We test this model across two high-powered survey experiments varying exposure to politically persuasive messaging (total n = 7,609 Americans; 26,584 observations). Respondents were shown a selection of persuasive messages drawn from a diverse sample of 72 clips. For each message, they were randomly assigned to one of three conditions: a short video, a detailed transcript of the video, or a control condition. Overall, we find that individuals are more likely to believe an event occurred when it is presented in video versus textual form, but the impact on attitudes and behavioral intentions is much smaller. Importantly, for both dimensions, these effects are highly stable across messages and respondent subgroups. Moreover, when it comes to attitudes and engagement, the difference between the video and text conditions is comparable to, if not smaller than, the difference between the text and control conditions. Taken together, these results call into question widely held assumptions about the unique persuasive power of political video over text.

Methods for Restricting Maximum Exposure Rate in Computerized Adaptative Testing

Methodology ◽  
2007 ◽  
Vol 3 (1) ◽  
pp. 14-23 ◽  
Author(s):  
Juan Ramon Barrada ◽  
Julio Olea ◽  
Vicente Ponsoda
Keyword(s):  
Measurement Accuracy ◽  
Computerized Adaptive Testing ◽  
Computation Time ◽  
Adaptive Testing ◽  
Exposure Rate ◽  
Control Parameters ◽  
The Impact ◽  
Two Alternatives ◽  
Selection Of ◽  
Maximum Exposure

Abstract. The Sympson-Hetter (1985) method provides a means of controlling maximum exposure rate of items in Computerized Adaptive Testing. Through a series of simulations, control parameters are set that mark the probability of administration of an item on being selected. This method presents two main problems: it requires a long computation time for calculating the parameters and the maximum exposure rate is slightly above the fixed limit. Van der Linden (2003) presented two alternatives which appear to solve both of the problems. The impact of these methods in the measurement accuracy has not been tested yet. We show how these methods over-restrict the exposure of some highly discriminating items and, thus, the accuracy is decreased. It also shown that, when the desired maximum exposure rate is near the minimum possible value, these methods offer an empirical maximum exposure rate clearly above the goal. A new method, based on the initial estimation of the probability of administration and the probability of selection of the items with the restricted method ( Revuelta & Ponsoda, 1998 ), is presented in this paper. It can be used with the Sympson-Hetter method and with the two van der Linden's methods. This option, when used with Sympson-Hetter, speeds the convergence of the control parameters without decreasing the accuracy.

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